NAB 3Q Profit Falls, Announces A$1.5 Billion Share Buyback

By Alice Uribe

SYDNEY--National Australia Bank signaled its third-quarter profit fell, reflecting a modest deterioration in asset quality, and it announced plans for 1.5 billion Australian dollar (US$970 million) share buyback.

NAB, the country's biggest business lender, recorded an unaudited net profit of A$1.75 billion for the three months through June. No comparable figure was disclosed, but it compares with a profit of A$1.85 billion reported by the bank a year ago.

Chief Executive Ross McEwan said the third-quarter result was sound after a very strong first half outcome.

"Our performance during these periods has benefited from the consistent and disciplined execution of our strategy, against a backdrop of higher interest rates but also slowing growth, inflationary pressures and elevated competition," he said. "We know this environment is challenging for our customers, but pleasingly, most are proving resilient with only a modest deterioration in asset quality in 3Q."

The lender reported unaudited cash earnings--a measure adjusted for fair value and hedging movements--of A$1.90 billion, which NAB said represented a 5.8% increase on last year.

At the same time, NAB announced plans to buy back up to A$1.5 billion of its shares as it looks to bring its Common Equity Tier 1 within a target range of 11.0-11.5%.

NAB said it expects the buyback to begin in late August, subject to market conditions.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

August 14, 2023 18:50 ET (22:50 GMT)

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